What to do? Pull out? Not?

Hi sa ali

It can be confusing can't it? Some questions to consider...

Have you driven around all the areas of interest and done your DD on current medians (for both units and houses) and likely rental returns?
Have you spoken to other investors in these areas, found out about amenities, good/bad pockets, what type of tenants are likely to rent your impending purchase?
Have you looked at the past cg rates? (these can be a good indicator of future growth)
Have you researched current infrastructure dvpts that may affect future values? (become a friend of the local council sites :))

Local knowledge is paramount when investigating unknown areas so ensure you do your homework.

Parra and surrounds have been hot property in the $300-500K price bracket since the Boost was first introduced at the end of 2008. I can certainly attest to this, given the clients who I've purchased for. It hasn't been so much about obtaining a "bargain" or a certain % off the listing price (which, by the way, is no measure in determining whether or not you achieved a fair price) but chasing the rising market to secure a quality property at a fair price. Most of the GOOD stock that I've shortlised for clients has sold at close to asking or even above (in some cases) as vendors hold all the cards right now. It's really only rubbish or overpriced homes now sitting on the market for longer than 6 weeks. Time on the market has dropped dramatically in many western suburbs in this price bracket as both FHB's and investors have been active in the market. Shortage of stock has also played a problem, especially with houses in the areas you're looking.

The Quakers Hill market (and surrounds) has been just as hot, with properties being quietly listed and not even making it to their first OFI before being sold. In high demand right now are houses and anything decent in the right area that's realistically priced under $400K is being sold very quickly. Rents are also consistent and strong, with most houses in the Parra and Blacktown LGA's having very low vacancy rates of less than 1.5% in many agencies.

Best of luck with your search and sorry to hear you've had to lose your 0.25% as part of the "learning curve". No matter- it's all part of the experience of becoming a property investor :)
 
Don' t worry OP , a lifetime is long and there is always a next time . I think the lessons that you have learnt through this experience are worth the $ 1000 .
 
Sorry I'm a bit late in posting this, but.. Was your contract subject to finance?

I'm not sure of the exact wording in the NSW contract's terms & conditions.. but doesn't it state in the finance clause that finance should be satisfactory to the buyer?? So when the lender forces you to front up another $10k, surely this isn't very satisfactory?? If this is the case, I don't think you should have forfeited the $1k deposit.
 
Sorry I'm a bit late in posting this, but.. Was your contract subject to finance?
I'm not sure of the exact wording in the NSW contract's terms & conditions.. but doesn't it state in the finance clause that finance should be satisfactory to the buyer?? So when the lender forces you to front up another $10k, surely this isn't very satisfactory?? If this is the case, I don't think you should have forfeited the $1k deposit.

It does not work this way in NSW vbplease. I've posted this before somewhere, but here it is again :)

There are 2 ways to purchase property in NSW (excluding auctions, which are pretty much the same everywhere):
Way 1
Sign a contract in the real estate agent’s office & pay a 0.25% deposit. 5 business day ‘cooling off’ period begins the following day.
2. Do pest & building reports. Apply for finance approval if required for the purchase. Seek, but don't necessarily gain, an extension of time if there are hold ups getting this done (quite common at the moment).
If no good, then "cool off" and you forfeit your 0.25% deposit to the vendor.
3. All good? do nothing - day 6, pay up the balance of 10% i.e. 9.75% and contracts are formally exchanged by default
4. Settlement in 42 days later (typically)
Way 2
1. Make a written offer. Written offer has clause such as "finance approval, building and pest, settlement period"
2. If the vendor accepts the offer (written), finance approval, building and pest inspections are initiated
3. Vendor's solicitor issues contract to your (purchaser's solicitor)
4. All good? Sign contracts, pay 10% deposit. NO cooling off period applies. You sign a 66W form along with your solicitor, that you acknowledge that no cooling off period applies.
5. Contracts are exchanged
6. Settlement in 42 days later (typically)

Under Way 2, you are open to being gazumped at any point up until points 4. & 5. i.e. Other purchasers could buy the property before contracts are exchanged and you would miss out.
 
the vendor.
3. All good? do nothing - day 6, pay up the balance of 10% i.e. 9.75% and contracts are formally exchanged by default
4. Settlement in 42 days later (typically)
Way 2
1. Make a written offer. Written offer has clause such as "finance approval, building and pest, settlement period"
2. If the vendor accepts the offer (written), finance approval, building and pest inspections are initiated
3. Vendor's solicitor issues contract to your (purchaser's solicitor)
4. All good? Sign contracts, pay 10% deposit. NO cooling off period applies. You sign a 66W form along with your solicitor, that you acknowledge that no cooling off period applies.
5. Contracts are exchanged
6. Settlement in 42 days later (typically)

Under Way 2, you are open to being gazumped at any point up until points 4. & 5. i.e. Other purchasers could buy the property before contracts are exchanged and you would miss out.

When you look at it like that,if the Agent has experience they can play what ever game they want depending on the marketing mix not saying any Agents are like that but is does leave the door wide open to deception and deceit,one would think they would fix up those trap doors in contract law..imho willair..
 
When you look at it like that,if the Agent has experience they can play what ever game they want depending on the marketing mix not saying any Agents are like that but is does leave the door wide open to deception and deceit,one would think they would fix up those trap doors in contract law..imho willair..
Not sure exactly what you mean....can you explain more?
 
2. Do pest & building reports. Apply for finance approval if required for the purchase. Seek, but don't necessarily gain, an extension of time if there are hold ups getting this done (quite common at the moment).
If no good, then "cool off" and you forfeit your 0.25% deposit to the vendor.
Propertunity, are you saying the 0.25% is forfeited even if the contract is cancelled from using either the finance or b+p clause?
 
Propertunity, are you saying the 0.25% is forfeited even if the contract is cancelled from using either the finance or b+p clause?

Well you don't get to put in any clauses. You sign the contract and then "cool off" if the p+b is no good or you can't get finance.

In this case you forfeit the 0.25% to the vendor for having his property "off the market" for 5 working days.
 
aha.. re-read your post. thanks for explaining that..

Wouldn't it be nice if the same method was used nation wide. The Qld method of course :p
 
Wouldn't it be nice if the same method was used nation wide.
I don't really care what method they use as long as it is standard nation-wide.

We standardised road rules nation-wide a few years ago, why on earth we cannot do the same for conveyancing I don't know? :confused:

Our interstate clients often use NSW based conveyancers & solicitors simply because they do not want to pay their own local trusted professionals for an education in NSW conveyancing - and for no other reason. It's simply ridiculous.
 
vbplease, my solicitor hasn't gotten back to me regarding the 1k deposit. He said he will try to get it back.

Properties are going quite quickly. I am struggling to make a decision to be honest. It is a big call given most contracts are being signed even before any inspections.

For those of you with experience, how much does subrub matter? Since the beggining of my search I wanted to limit it between Parramatta and Toongabbie. However 1. there arent many properties 2. it is a sellers market and these areas are in high demand. I peeked into South Blacktown. Townhouses, villas and duplexes are relatively cheap in Blacktown (near the station) for around 290k. My budget for an old property is anywhere between 320k and 350k - however the cheaper the better. I want to be in property investment so I am wondering if it matters whether I buy a 290k property vs a 330k property (for arguments sake). Surely a 290k property will have greater serviceability.

Appreciate your views!
 
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